Economics by the Book
The Mustard Seed newsletter, Campus Ministry column
September 2010 - May 2011
Pastor Ron Friedrich
September 2010 - May 2011
Pastor Ron Friedrich
Part 1
Every year in our campus ministry column, we try to address larger topics concerning the Christian world view. Sometimes we study hot topics that challenge our faith. Other times we struggle with the practical side of Christian living. This year we will focus on the practical matter of personal money management. Our textbook for this series is one of the most reliable sources for solid financial advice that you will find anywhere -- the Bible.
"Huh!!? The Bible?" Yes, indeed. It is safe to say that the Bible talks more about money than it talks about heaven. And when the Bible does talk about heaven, it often pulls in comparisons from the world of finance.
Many Christians have a misconception that their lives are divided into two separate worlds -- spiritual and material. They feel accountable to God for the spiritual side of their lives, but the physical side of their lives is entirely theirs to own as they choose. In their minds, Christ only redeemed their souls for heaven.
This misconception often leads us to compartmentalize our time and our money. Many Christians think that one half of one day of each week (i.e. Sunday morning) belongs to God and the remaining six and a half days belong to us. And they think that 10% (or less) of our money belongs to God, 15% (or more) belongs to the government, and the rest belongs to us.
What's wrong with this picture? The clear teaching of God's Word is that Christ saved us, both SOUL and BODY. He didn't redeem only the spiritual half of our being. We are His 100%. And the stuff that we "own" we only have on loan from God for a short time. All that we have belongs to God -- all 7 days in each week, all 24 hours in each day, all that we receive from our labors, it all belongs to God. We are only caretakers of His property. We are managers of the King's business.
When we understand this concept, we are free from many burdens: Worry. Craving for more. And wastefulness. When we suffer loss, we understand that we have in fact lost nothing. It wasn't ours to lose.
Your homework for this series is to read the Old Testament book of Proverbs. Look for verses that talk about money, how to acquire wealth, and how to lose wealth. You will find in there advice about work, saving, honesty in business, charity, debt, and paying bills on time.
For example, the Bible says that two of the secrets to prosperity are (1) diligent work and (2) saving:
Every year in our campus ministry column, we try to address larger topics concerning the Christian world view. Sometimes we study hot topics that challenge our faith. Other times we struggle with the practical side of Christian living. This year we will focus on the practical matter of personal money management. Our textbook for this series is one of the most reliable sources for solid financial advice that you will find anywhere -- the Bible.
"Huh!!? The Bible?" Yes, indeed. It is safe to say that the Bible talks more about money than it talks about heaven. And when the Bible does talk about heaven, it often pulls in comparisons from the world of finance.
Many Christians have a misconception that their lives are divided into two separate worlds -- spiritual and material. They feel accountable to God for the spiritual side of their lives, but the physical side of their lives is entirely theirs to own as they choose. In their minds, Christ only redeemed their souls for heaven.
This misconception often leads us to compartmentalize our time and our money. Many Christians think that one half of one day of each week (i.e. Sunday morning) belongs to God and the remaining six and a half days belong to us. And they think that 10% (or less) of our money belongs to God, 15% (or more) belongs to the government, and the rest belongs to us.
What's wrong with this picture? The clear teaching of God's Word is that Christ saved us, both SOUL and BODY. He didn't redeem only the spiritual half of our being. We are His 100%. And the stuff that we "own" we only have on loan from God for a short time. All that we have belongs to God -- all 7 days in each week, all 24 hours in each day, all that we receive from our labors, it all belongs to God. We are only caretakers of His property. We are managers of the King's business.
When we understand this concept, we are free from many burdens: Worry. Craving for more. And wastefulness. When we suffer loss, we understand that we have in fact lost nothing. It wasn't ours to lose.
Your homework for this series is to read the Old Testament book of Proverbs. Look for verses that talk about money, how to acquire wealth, and how to lose wealth. You will find in there advice about work, saving, honesty in business, charity, debt, and paying bills on time.
For example, the Bible says that two of the secrets to prosperity are (1) diligent work and (2) saving:
You people who don't want to work, think about the ant. It stores up its food in summer. It gathers its food at harvest time. You lazy people, how long will you lie there? When will you get up from your sleep? You might sleep a little or take a little nap. You might even fold your hands and rest. Then you would be poor, as if someone had robbed you. You would have little, as if someone had stolen from you. Those who work their land will have plenty of food, but the ones who chase empty dreams instead will end up poor. (Proverbs 6;6-11; 28.19)
Incidentally, Solomon wrote this 400 years before Aesop wrote his fable about the grasshopper and the ant.
When you discover a verse about money management in your Bible, I suggest that you underline it and put a dollar-sign ($) in the margin. Also, start a personal journal in which you record insights which you gain from your discoveries in Proverbs. Especially note how these insights apply practically in your personal situation.
When you discover a verse about money management in your Bible, I suggest that you underline it and put a dollar-sign ($) in the margin. Also, start a personal journal in which you record insights which you gain from your discoveries in Proverbs. Especially note how these insights apply practically in your personal situation.
Part 2
Last month we corrected a common misconception that we live in two worlds -- material and spiritual, assuming that God is only concerned about the spiritual aspect of our lives. Wrong. We are His 100%, body and soul. All our finances and resources are also His. In the final analysis, we own nothing. We are simply managers of His business.
We also learned from the wisdom of the Proverbs is that two keys to financial success are (1) diligent work and (2) saving.
The third important financial principle is honesty.
Proverbs 11:1 says,
Last month we corrected a common misconception that we live in two worlds -- material and spiritual, assuming that God is only concerned about the spiritual aspect of our lives. Wrong. We are His 100%, body and soul. All our finances and resources are also His. In the final analysis, we own nothing. We are simply managers of His business.
We also learned from the wisdom of the Proverbs is that two keys to financial success are (1) diligent work and (2) saving.
The third important financial principle is honesty.
Proverbs 11:1 says,
The Lord hates dishonest scales, but he is pleased with honest weights.
What is the picture here? In olden times, a merchant would weigh his produce on a balance scale at the moment of sale. Produce went on one side of the scale, and the measuring weights went on the other side. A buyer expected to pay a certain amount of money per weight of the product. But dishonest merchants would shave material off of his weights, so that they were lighter than they should be. Result: The buyer receives less product than he is being told. The merchant cheated. And, the Bible says, God notices that and He hates it.
This picture is offered as an example for ALL business transactions. In many times and in many ways the Bible tells employers to pay their workers' wages in full and on time. (Dt 24:14-15; Jer 22:13; James 5:4) This also applies to the rest of us as counsel to pay our bills in full and on time. (Proverbs 3:27). It also means honesty in the sources of software we install in our computers.
Honesty in finances means accurately reporting income and expenses to the IRS, honestly reporting expense vouchers to employers, and using designated funds only for the purpose for which they were intended.
Will people lie to us about money? Will they cheat us? Yes. But that is not our license to become like them. We would be extremely foolish to expect that God will bless us financially and meet our needs when we are dishonest in our financial dealings. Indeed, the only reason we would have for cheating is that we do not believe that God is able to bless us and meet our needs if we do business His way. We don't obey Him because we don't trust Him. He is God, and He is able... when we reflect His character in our finances.
This picture is offered as an example for ALL business transactions. In many times and in many ways the Bible tells employers to pay their workers' wages in full and on time. (Dt 24:14-15; Jer 22:13; James 5:4) This also applies to the rest of us as counsel to pay our bills in full and on time. (Proverbs 3:27). It also means honesty in the sources of software we install in our computers.
Honesty in finances means accurately reporting income and expenses to the IRS, honestly reporting expense vouchers to employers, and using designated funds only for the purpose for which they were intended.
Will people lie to us about money? Will they cheat us? Yes. But that is not our license to become like them. We would be extremely foolish to expect that God will bless us financially and meet our needs when we are dishonest in our financial dealings. Indeed, the only reason we would have for cheating is that we do not believe that God is able to bless us and meet our needs if we do business His way. We don't obey Him because we don't trust Him. He is God, and He is able... when we reflect His character in our finances.
Part 3
Financial principle #4: Avoid "get rich quick" schemes. These schemes include:
Financial principle #4: Avoid "get rich quick" schemes. These schemes include:
- Games of chance -- lotteries and all forms of gambling. One savvy politician referred to the State lottery as "a tax on fools."
- "Investments" which promise extremely high rates of return. A wise investor's proverb: If it seems too good to be true, it is. Meaning: it's a scam.
- Pyramid schemes, often called "Multi-Level Marketing" (MLM).
- Unsolicited checks you may receive in the mail. Sign that check from an advertiser and then watch surprising new charges appear on your credit card bill.
- Internet and Email offers from rich widows and orphans in England and Nigeria.
Those who want to become rich bring temptation to themselves and are caught in a trap. They want many foolish and harmful things that ruin and destroy people. The love of money causes all kinds of evil. Some people have left the faith, because they wanted to get more money, but they have caused themselves much sorrow.
(1 Timothy 6:9-10 NCV)
People who really do "win big" go broke again just as quickly. They become miserable and in worse condition than they were before, confirming another sad truth:
Property you gain quickly at the beginning will not be blessed in the end. (Proverbs 20:21 NIrV)
Part 5
Now as we further examine The Book, we encounter counsel which differs from standard operating procedures in most American homes and businesses.
(5) Avoid debt
Our culture believes that we can only survive and thrive on credit, forgetting that "credit" is a four-letter word (DEBT). We go into debt for cars, computers, furniture, vacations, and even gifts -- things that all decrease in value every day that passes.
To those of us who live in shadow of the nation's Capitol, "OPM" means the Office of Personnel Management -- the US government's HR department. But in the business world outside the Beltway, OPM means "Other People's Money." It is the creed that you borrow money to make money, presumably at a higher rate of return than your loan interest; you repay the loan and keep the difference. This practice is so common in the business world that the Bible's notion of living and working debt-free seems like heresy.
Proverbs 22:7 says,
Now as we further examine The Book, we encounter counsel which differs from standard operating procedures in most American homes and businesses.
(5) Avoid debt
Our culture believes that we can only survive and thrive on credit, forgetting that "credit" is a four-letter word (DEBT). We go into debt for cars, computers, furniture, vacations, and even gifts -- things that all decrease in value every day that passes.
To those of us who live in shadow of the nation's Capitol, "OPM" means the Office of Personnel Management -- the US government's HR department. But in the business world outside the Beltway, OPM means "Other People's Money." It is the creed that you borrow money to make money, presumably at a higher rate of return than your loan interest; you repay the loan and keep the difference. This practice is so common in the business world that the Bible's notion of living and working debt-free seems like heresy.
Proverbs 22:7 says,
The borrower is servant to the lender.
When you are in debt, you work for the benefit of your creditor, not for your own need.
Debt also presumes on your future ability to pay. One Consumer Reports magazine subscriber complained, "What do you call it when the bank repossesses my truck, sells it for less than I owed, and then takes me to court to collect the difference?" CR replied, "It's called 'The Law.'"
The Apostle Paul wisely counsels us, Owe no one anything except to love one another, for he who loves another has fulfilled the law. The NIV translation says it like this:
Debt also presumes on your future ability to pay. One Consumer Reports magazine subscriber complained, "What do you call it when the bank repossesses my truck, sells it for less than I owed, and then takes me to court to collect the difference?" CR replied, "It's called 'The Law.'"
The Apostle Paul wisely counsels us, Owe no one anything except to love one another, for he who loves another has fulfilled the law. The NIV translation says it like this:
Let no debt remain outstanding, except the continuing debt to love one another, for he who loves his fellowman has fulfilled the law. (Romans 13:8)
The Bible also counsels us: Don't cosign for other people's debts.
He who puts up security for another will surely suffer, but whoever refuses to strike hands in pledge is safe. (Proverbs 11:1)
The Bible says that when you cosign, you obviously lack good judgment. (Proverbs 17:18)
This also means paying your bills on time in full (Proverbs 3:27-28). Whenever you use a credit card, pay your credit card bill IN FULL every month so you won't pay any interest charges. If you need to buy something that costs more money than you can spend, wait (learn patience and self restraint), save (earn interest instead of paying interest), pay cash only for what you can afford, and enjoy your freedom from financial bondage. When debt is truly unavoidable, work to pay it off as quickly as possible, taking advantage of every opportunity to pay back principal ahead of schedule.
This also means paying your bills on time in full (Proverbs 3:27-28). Whenever you use a credit card, pay your credit card bill IN FULL every month so you won't pay any interest charges. If you need to buy something that costs more money than you can spend, wait (learn patience and self restraint), save (earn interest instead of paying interest), pay cash only for what you can afford, and enjoy your freedom from financial bondage. When debt is truly unavoidable, work to pay it off as quickly as possible, taking advantage of every opportunity to pay back principal ahead of schedule.
Part 5
The sixth principle for financial security is learning the blessings and freedom that come with tithing. The word "tithe" is an old English word that means "tenth." In the Bible, "tithe" means giving back to God 10% of all income -- not merely 10% of the loose change that's left after the bills have been paid.
My first lesson in tithing came in a true story from a pastor who served a country church. He invited a wealthy businessman, one Mr. Kuekendahl, an executive in the Ayers department store chain, to be the speaker for a week of special evening services. The meetings were well attended and the people appreciated Mr. Kuekendahl's teaching.
As the pastor drove Mr. Kuekendahl back to the train station, Mr. K. asked, "Pastor, may I ask you a personal question? Do you tithe?"
"Oh, I really believe in tithing, and I teach it to my congregation," answered the pastor.
"That's not what I asked," said Mr. K. "My question was, do you tithe?"
"I would if I could," said the pastor. "But we are a poor family serving a poor congregation. There is barely enough money coming in just to live on, and there isn't enough for a full tithe."
"Let me make you an offer," said Mr. K. "If you would be willing to commit yourself to a full tithe for the next 12 months, any time you find that you are short of funds to meet your obligations, you need only to call me, and I will personally refund the full amount you have tithed, no questions asked."
The pastor thought, "I have nothing to lose. This wealthy man can easily afford a tithe on my meager income many times over."
"Okay," said the pastor. "I'll try it."
The pastor kept his commitment to tithe, giving to the Lord the first 10% of everything he received, both from his salary and gifts. He found that during that year he experienced much less financial stress. There were fewer doctor bills and fewer car repairs. The congregation was able to increase his salary, and members gave unexpected gifts of food and clothing.
The year was almost up when the pastor realized that he had not even once considered calling his friend to recover his tithe. But the businessman's commitment was only for one year. The pastor faced a decision. Should he continue tithing without Mr. Kuekendahl's safety net? Or should he play it safe and return to his previous habit of contributing only what he could spare?
"Then it dawned on me," wrote the pastor, "that I was trusting the promise of a man, but was unwilling to trust the promise of God." From that time on, the pastor did not stop tithing.
The Bible says:
The sixth principle for financial security is learning the blessings and freedom that come with tithing. The word "tithe" is an old English word that means "tenth." In the Bible, "tithe" means giving back to God 10% of all income -- not merely 10% of the loose change that's left after the bills have been paid.
My first lesson in tithing came in a true story from a pastor who served a country church. He invited a wealthy businessman, one Mr. Kuekendahl, an executive in the Ayers department store chain, to be the speaker for a week of special evening services. The meetings were well attended and the people appreciated Mr. Kuekendahl's teaching.
As the pastor drove Mr. Kuekendahl back to the train station, Mr. K. asked, "Pastor, may I ask you a personal question? Do you tithe?"
"Oh, I really believe in tithing, and I teach it to my congregation," answered the pastor.
"That's not what I asked," said Mr. K. "My question was, do you tithe?"
"I would if I could," said the pastor. "But we are a poor family serving a poor congregation. There is barely enough money coming in just to live on, and there isn't enough for a full tithe."
"Let me make you an offer," said Mr. K. "If you would be willing to commit yourself to a full tithe for the next 12 months, any time you find that you are short of funds to meet your obligations, you need only to call me, and I will personally refund the full amount you have tithed, no questions asked."
The pastor thought, "I have nothing to lose. This wealthy man can easily afford a tithe on my meager income many times over."
"Okay," said the pastor. "I'll try it."
The pastor kept his commitment to tithe, giving to the Lord the first 10% of everything he received, both from his salary and gifts. He found that during that year he experienced much less financial stress. There were fewer doctor bills and fewer car repairs. The congregation was able to increase his salary, and members gave unexpected gifts of food and clothing.
The year was almost up when the pastor realized that he had not even once considered calling his friend to recover his tithe. But the businessman's commitment was only for one year. The pastor faced a decision. Should he continue tithing without Mr. Kuekendahl's safety net? Or should he play it safe and return to his previous habit of contributing only what he could spare?
"Then it dawned on me," wrote the pastor, "that I was trusting the promise of a man, but was unwilling to trust the promise of God." From that time on, the pastor did not stop tithing.
The Bible says:
Should a person rob God? But you are robbing Me. You ask "How have we robbed You?" You have robbed Me in your offerings and the tenth [tithe] of your crops. So a curse is on you, because the whole nation has robbed me. Bring to the storehouse a full tenth of what you earn so there will be food in my house. Test Me in this, says the Lord All-Powerful. I will open the windows of heaven for you and pour out all the blessings you need. (Malachi 3:8-10 NCV)
A good friend of mine said it well: "I can't afford not to tithe!" I agree.
Part 6
Since the first day of our marriage, my wife and I began doing with our family finances what every business does. We record every financial transaction. At first we did this with a notebook that had a separate ledger page for each budget category (food, mortgage, insurance, etc.), the same as we would do if we were setting aside cash in envelopes for upcoming expenses. We never need to quarrel about money because this system forces us to be accountable to each other for every dime we spend. Whenever I am tempted to buy anything on impulse, I remember that I must have the money available in the budget for it, that I will have to write it down when I get home, and that my wife will see the record. This system forces us to communicate about our finances and to make our financial decision together.*
One single woman who regularly attended our church was always living on the edge of financial disaster. She, like so many, had too much month left at the end of her money. My wife sensed that part of her problem may have been her failure to plan carefully how she spent her money.
Rather than teach her our complicated ledger system, we encouraged her to take one baby-step in personal financial accountability. We gave her one piece of paper and told her that during the next two weeks she should write down everything she bought, record every bill she paid, and write the amount. When I visited her two weeks later, she was excited. "For years I have been frustrated that I haven't been able to buy new shoes. I finally figured out where my shoes are -- in the candy machine at work! If I just stop snacking, I will have enough to buy those shoes!"
Most folks take much longer for the light to turn on. Some people choose rather to be "free" from accountability, and in their freedom they enslave themselves to stress and conflict.
One young couple had serious conflict on several issues -- money, child discipline, and in-laws. But money seemed the most visible, most contentious, and the most fixable problem. As my wife and I listened to their complaints against each other, it was obvious that a simple system of financial accountability by keeping a record of expenses would help resolve some of their conflict. Their response was to shift their anger away from each other and toward us. They both wanted to throw us out of their house. Their root problem became obvious: "Independence." They both refused to be accountable to each other. A few months later they were divorced.
Many folks "freak out" at the word "budget." But a budget is nothing more than a spending plan. Know what you earn, and then decide what you can buy. Write it down. And stick to it.
If we add these steps to our first six principles for financial freedom, they look like this:
(7) Keep a record of what you spend.
(8) Be accountable for what you spend.
(9) Plan your spending and saving, then diligently follow the plan.
Since the first day of our marriage, my wife and I began doing with our family finances what every business does. We record every financial transaction. At first we did this with a notebook that had a separate ledger page for each budget category (food, mortgage, insurance, etc.), the same as we would do if we were setting aside cash in envelopes for upcoming expenses. We never need to quarrel about money because this system forces us to be accountable to each other for every dime we spend. Whenever I am tempted to buy anything on impulse, I remember that I must have the money available in the budget for it, that I will have to write it down when I get home, and that my wife will see the record. This system forces us to communicate about our finances and to make our financial decision together.*
One single woman who regularly attended our church was always living on the edge of financial disaster. She, like so many, had too much month left at the end of her money. My wife sensed that part of her problem may have been her failure to plan carefully how she spent her money.
Rather than teach her our complicated ledger system, we encouraged her to take one baby-step in personal financial accountability. We gave her one piece of paper and told her that during the next two weeks she should write down everything she bought, record every bill she paid, and write the amount. When I visited her two weeks later, she was excited. "For years I have been frustrated that I haven't been able to buy new shoes. I finally figured out where my shoes are -- in the candy machine at work! If I just stop snacking, I will have enough to buy those shoes!"
Most folks take much longer for the light to turn on. Some people choose rather to be "free" from accountability, and in their freedom they enslave themselves to stress and conflict.
One young couple had serious conflict on several issues -- money, child discipline, and in-laws. But money seemed the most visible, most contentious, and the most fixable problem. As my wife and I listened to their complaints against each other, it was obvious that a simple system of financial accountability by keeping a record of expenses would help resolve some of their conflict. Their response was to shift their anger away from each other and toward us. They both wanted to throw us out of their house. Their root problem became obvious: "Independence." They both refused to be accountable to each other. A few months later they were divorced.
Many folks "freak out" at the word "budget." But a budget is nothing more than a spending plan. Know what you earn, and then decide what you can buy. Write it down. And stick to it.
If we add these steps to our first six principles for financial freedom, they look like this:
(7) Keep a record of what you spend.
(8) Be accountable for what you spend.
(9) Plan your spending and saving, then diligently follow the plan.
* Our original ledger notebook eventually migrated to the computer. Online personal finance programs which I recommend are youneedabudget.com [YNAB] and mint.com. (YNAB is the better system; however Mint offers a free service.)
Part 7
"I gotta have that -- now!" That's the little voice inside our head that urges us to buy things we suddenly want, but we will never need and we may never use. Sometimes that voice is a bit more honest but no less tempting: "I think that this thing would be something nice to own, and some day I may need it. Here it is, so I better get it now." That little voice speaks to you when you are browsing at your favorite "toy" store, where you regularly feed your hobby. It speaks to you when your eye catches a full-page magazine ad, or your TV remote gets stuck on the shopping channel.
I confess that I have given in to the urge to buy something on impulse -- an electronic part from Radio Shack, or a tool from Home Depot. After many years, that electronic part is still in it's original package, and that tool is still waiting for me to use it.
Folks who have a serious problem with buying useless stuff on impulse simply can't stand saving money in the bank. If they have a dollar in their pocket, they will think of a hundred ways to spend it that same day. And they wonder why they are always broke.
Even high-income people fall into financial bondage when they forget how restrain their urges to buy things that they neither need nor can afford. I heard about a highly paid medical doctor who went to a Christian financial counselor for advice on how to get his debt under control. The counselor told the doctor to cut up his credit cards and get a second job mowing lawns! The counselor was serious, and the doctor took his advice. In doing so, the doctor learned an important lesson. Later he reported that once while he was driving through town he saw a boat for sale which really appealed to him. He felt the old familiar urge to buy it right away, before someone else got it. Then he pictured in his mind how many lawns he would need to mow to pay for it -- and his desire instantly vanished. He was cured.
The financial counselor who reported this story confessed his own weakness in this area -- tools for car repair. How did he get his urge under control? He resolved that any time the impulse hit him ("I must have that tool, because some day I will need it"), he would wait at least one week before deciding to buy it. If he got an urge to buy something really expensive, he would wait longer -- a month or more. During that time, he could evaluate his need. Usually the urge faded in a couple days, and he could see that he can live very comfortably without owning that thing which had beaconed him. Or when, in consultation with his wife and his family budget, he decided to go ahead and buy it, the time to make that decision allowed him to shop around, compare prices and quality, and make a wiser purchase than he would have made the day his impulse hit him.
Another way to curb impulse purchases is to shop with a list, and buy only what is on the list. I have observed two kinds of shoppers -- grazers and hunters. Hunters go to the store for specific items. If they don't find what they are hunting for, they leave without buying anything. Then they either go hunting at a different store, or they return home. Grazers go shopping without a real plan. They go shopping to see what appeals to them. They become prey for snazzy store displays and aggressive sales associates who work on commission. And they come home poorer people.
Proverbs 21:5 says,
"I gotta have that -- now!" That's the little voice inside our head that urges us to buy things we suddenly want, but we will never need and we may never use. Sometimes that voice is a bit more honest but no less tempting: "I think that this thing would be something nice to own, and some day I may need it. Here it is, so I better get it now." That little voice speaks to you when you are browsing at your favorite "toy" store, where you regularly feed your hobby. It speaks to you when your eye catches a full-page magazine ad, or your TV remote gets stuck on the shopping channel.
I confess that I have given in to the urge to buy something on impulse -- an electronic part from Radio Shack, or a tool from Home Depot. After many years, that electronic part is still in it's original package, and that tool is still waiting for me to use it.
Folks who have a serious problem with buying useless stuff on impulse simply can't stand saving money in the bank. If they have a dollar in their pocket, they will think of a hundred ways to spend it that same day. And they wonder why they are always broke.
Even high-income people fall into financial bondage when they forget how restrain their urges to buy things that they neither need nor can afford. I heard about a highly paid medical doctor who went to a Christian financial counselor for advice on how to get his debt under control. The counselor told the doctor to cut up his credit cards and get a second job mowing lawns! The counselor was serious, and the doctor took his advice. In doing so, the doctor learned an important lesson. Later he reported that once while he was driving through town he saw a boat for sale which really appealed to him. He felt the old familiar urge to buy it right away, before someone else got it. Then he pictured in his mind how many lawns he would need to mow to pay for it -- and his desire instantly vanished. He was cured.
The financial counselor who reported this story confessed his own weakness in this area -- tools for car repair. How did he get his urge under control? He resolved that any time the impulse hit him ("I must have that tool, because some day I will need it"), he would wait at least one week before deciding to buy it. If he got an urge to buy something really expensive, he would wait longer -- a month or more. During that time, he could evaluate his need. Usually the urge faded in a couple days, and he could see that he can live very comfortably without owning that thing which had beaconed him. Or when, in consultation with his wife and his family budget, he decided to go ahead and buy it, the time to make that decision allowed him to shop around, compare prices and quality, and make a wiser purchase than he would have made the day his impulse hit him.
Another way to curb impulse purchases is to shop with a list, and buy only what is on the list. I have observed two kinds of shoppers -- grazers and hunters. Hunters go to the store for specific items. If they don't find what they are hunting for, they leave without buying anything. Then they either go hunting at a different store, or they return home. Grazers go shopping without a real plan. They go shopping to see what appeals to them. They become prey for snazzy store displays and aggressive sales associates who work on commission. And they come home poorer people.
Proverbs 21:5 says,
The plans of hard-working people earn a profit, but those who act too quickly become poor.
Jesus reminded us to keep our priorities in perspective when He said,
"Life does not consist in an abundance of possessions." (Luke 12:15)
Financial management principle #10: Don't buy anything on impulse.
Part 8
Once a reporter interviewing a very wealthy man asked, "How much money does a person need to be really satisfied?"
The rich man answered, "Always a little more." This man understood that money and things will never satisfy us. When we expect that getting more money or getting new things will make us happy, we will be disappointed. So we foolishly hunger for more.
We tend to measure our success by the quantity of our stuff. God measures success very differently. He said,
Once a reporter interviewing a very wealthy man asked, "How much money does a person need to be really satisfied?"
The rich man answered, "Always a little more." This man understood that money and things will never satisfy us. When we expect that getting more money or getting new things will make us happy, we will be disappointed. So we foolishly hunger for more.
We tend to measure our success by the quantity of our stuff. God measures success very differently. He said,
"What good is it if someone gains the whole world but loses his soul? Or what can anyone trade for his soul?" (Matthew 16:26)
Principle #11 in our series on financial management is to learn the joy of contentment. That means, learn to live simply and be satisfied with the stuff you already have. We need this attitude in order to master the other financial principles we have studied in this series, especially avoiding debt, impulse purchases, and get-rich-quick schemes.
One of the secrets of being satisfied is understanding that we don't own things. Things own us! We are slaves to our stuff. Jesus warned us,
One of the secrets of being satisfied is understanding that we don't own things. Things own us! We are slaves to our stuff. Jesus warned us,
"No one can serve two masters at the same time. He will hate one of them and love the other. Or he will be faithful to one and dislike the other. You can't serve God and Money at the same time." (Matthew 6:24)
Often we see TV preachers who fail to understand this principle. They claim that if you have enough faith in God, you will become rich with material things. The Bible warns us about those kinds of preachers.
They think that serving God is a way to get rich. If we are satisfied with the things we have while we serve God, we will gain in what has true value. We brought nothing into the world, so we can take nothing out. But, if we have food and clothes, we will be satisfied with that. Those who want to become rich bring temptation to themselves and are caught in a trap. They want many foolish and harmful things that ruin and destroy people. The love of money causes all kinds of evil. Some people have left the faith, because they wanted to get more money, but they have caused themselves much sorrow. (1 Timothy 6:5-10)
"We brought nothing into the world, so we can take nothing out." That is so true. Someone once asked an accountant of a wealthy individual who had recently died, "How much did he leave?"
The accountant answered, "All of it."
A wise man who understood the principle of contentment once offered this prayer:
The accountant answered, "All of it."
A wise man who understood the principle of contentment once offered this prayer:
Lord, I ask You for two things. [1] Keep me from lying and being dishonest. And [2] don't make me either rich or poor; but give me only the bread I need each day. If I have too much, I might reject You and say, 'I don't know the Lord.' If I am poor, I might steal. Then I would bring shame to the name of my God. (Proverbs 30.7-9)
Our last lesson in this series will give us another important key to the secret of contentment.
Part 9
Perhaps we ought to review the principles of wise financial management which we have learned from the Bible:
#1. Diligent work
#2. Saving
#3. Honesty
#4. Avoid "get-rich-quick" schemes
#5. Avoid debt
#6. Learn the blessings and freedom that come with tithing
#7. Keep a record of what you spend
#8. Be accountable for what you spend
#9. Plan your spending and saving, then diligently follow the plan
#10. Don't buy anything on impulse
#11. Learn the joy of contentment
Now as we conclude, we come full circle back to our introduction to this series:
#12. Remember that we own nothing. Everything we have belongs to God.
God has merely loaned to us what is His for a brief season.
The Old Testament saint named Job understood this principle well. He was a very wealthy man who lost everything in one day. What was his response to this calamity?
Perhaps we ought to review the principles of wise financial management which we have learned from the Bible:
#1. Diligent work
#2. Saving
#3. Honesty
#4. Avoid "get-rich-quick" schemes
#5. Avoid debt
#6. Learn the blessings and freedom that come with tithing
#7. Keep a record of what you spend
#8. Be accountable for what you spend
#9. Plan your spending and saving, then diligently follow the plan
#10. Don't buy anything on impulse
#11. Learn the joy of contentment
Now as we conclude, we come full circle back to our introduction to this series:
#12. Remember that we own nothing. Everything we have belongs to God.
God has merely loaned to us what is His for a brief season.
The Old Testament saint named Job understood this principle well. He was a very wealthy man who lost everything in one day. What was his response to this calamity?
"I was naked when I was born, and I will be naked when I die. The Lord gave these things to me, and he has taken them away. Praise the name of the Lord." (Job 1.20 NCV)
Christian financial advisor, Larry Burkett (who is now with the Lord in heaven), told the following true story to illustrate this principle and several others we have studied in this series:
"It happened on a Sunday afternoon, December 20, 1998. Friends had been invited for dinner following the church service when the fire started. Thankfully, the couple, their six children, and their friends all escaped without injury. But all that was saved from their home where a few fire-blackened Christmas presents near the front door that the firefighters were able to remove.
"The couple told me that being debt free minimized the stress of their fire-related loss. Even the Christmas presents were paid for. They said, 'We've been reminded that when we truly give our lives, our possessions, and everything we are and everything we have to the Lord, we shouldn't be grieved if He takes something that already belongs to Him.' "
"A few days later their daughters were rewrapping the Christmas presents with fresh paper. Their son commented about the gifts: 'Isn't it interesting,' he said 'that the only things that were saved from the fire were those things we planned to give away?'" (Crown Ministries Newsletter, 1999)
This principle of ownership is the basis for all other financial principles -- honesty, contentment, tithing, curbing impulse buying, avoiding debt, etc. Since we are managers of things that belong to God, we are obligated to manage them wisely and use them for His purposes.
An old word for management is "stewardship." A steward is a manager who takes care of matters on behalf of someone in higher authority. A well known business principle which Jesus Himself expressed addresses the integrity and diligence of managers:
An old word for management is "stewardship." A steward is a manager who takes care of matters on behalf of someone in higher authority. A well known business principle which Jesus Himself expressed addresses the integrity and diligence of managers:
Whoever can be trusted with very little can also be trusted with much, and whoever is dishonest with very little will also be dishonest with much. (Luke 16:10)
While this is true when we manage things for other people, it is even more true when we manage what belongs to God.